FISCAL NOTE

Date Requested: February 10, 2021
Time Requested: 04:31 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1325 Introduced HB2149
CBD Subject:


FUND(S):

General Revenue Fund

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The stated purpose of this bill is to allow a personal income tax deduction for a foster care child. Although the bill purpose states it allows for personal income deduction for foster children, it allows a taxpayer a $2,000 exemption for a foster care child in their home. The estimated revenue loss with this Personal Income Tax exemption would be slightly more than $500,000 for FY2023 and all subsequent years. Additional administrative costs to the State Tax Department would be $56,000 for FY2023 and $45,000 for subsequent years.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 45,000
Personal Services 0 0 45,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -500,000 -500,000


Explanation of above estimates (including long-range effect):


Although the bill purpose states it allows for personal income deduction for foster children, it allows a taxpayer a $2,000 exemption for a foster care child in their home. The estimated revenue loss with this Personal Income Tax exemption would be slightly more than $500,000 for FY2023 and all subsequent years. Additional administrative costs to the State Tax Department would be $56,000 for FY2023 and $45,000 for subsequent years.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov